Mobile will account for more than 75 per cent of eCoupon redemptions by 2021 – with nearly 25 per cent of those driven by in-app offers.
According to Juniper Research’s latest study, redemptions are set to double over the next five years, reaching $81bn (£64bn), increasing from an estimated $40bn this year.
The mobile and digital analyst firm found significant opportunity exists via location-based promotions, similar to what is seen with in-store beacons, and expect more retailers to join in over the next few years. As a result, Juniper recommends that ‘providers increase investment in beacon and NFC technologies’.
Research author Lauren Foye said: “This provides retail with a whole new dimension for loyalty campaigns, and will surely see success as a new delivery channel.”
The research also argues that redemption levels will grow due to the opportunities that new technologies offer, such as connected cars. Juniper believes that current partnerships, which provide in-vehicle offers tailored to location, will see rapid expansion. The research, however, does also cite the impact of disruptive players – using the example of Uber’s partnership with Visa to offer loyalty features at partnering local business – and fears other ‘digital first’ service providers could follow suit.